OPINION: Elba Island's economic impact significant

It’s worth keeping an eye on the LNG plant on Elba Island, not because it might blow up but because its value as an economic force for Savannah is growing.

The notion of that potential increased impact surfaced several months ago when corporate officials linked to the plant began to mention the possibility that natural gas might be exported through the plant and made the first formal application for government permission to do so.

At the time, they threw out numbers that suggested the transition could require more than $1 billion in new construction at the plant.

The moment when that construction could begin is getting closer.

On Monday, Shell US Gas & Power LLC and Southern Liquefaction Co. LLC, a Kinder Morgan company and unit of El Paso Pipeline Partners, announced plans to develop a natural gas liquefaction plant at Southern LNG’s Elba Island Terminal.

Once various corporate and regulatory approvals have been received, Shell and Kinder Morgan affiliates have agreed to modify the Elba Express Pipeline and Elba Island LNG Terminal to physically transport natural gas to the terminal, liquefy it and load it onto ships for export.

Construction is expected to start within the next two years, with the first exports flowing out by the end of the decade.

Southern LNG already has received approval from the Department of Energy to export up to half a billion cubic feet per day, roughly equivalent to 4 million tons of LNG per year, from the Elba Island terminal to Free-Trade-Agreement countries. It’s one of 17 facilities that have received such approval.

What does this mean for Savannah’s economy?

“The potential benefits of a liquefaction project to the local community could include employment for hundreds of skilled trades workers during construction, additional full-time terminal personnel once operational, positive financial impact to local businesses and governments from the additional contract workers living and working in the community, and additional significant ad valorem taxes for Chatham County,” said Kinder Morgan spokesman Richard Wheatley.

As almost a postcript to the announcement of the partnership to build a liquefaction plant, Kinder Morgan announced a day later a $5 billion deal to acquire Houston-based Copano Energy LLC for about $3.2 billion in stock, which will give the company more access to oil and gas-rich territory in Texas, Wyoming and Oklahoma.

And could help ensure an ongoing source of natural gas to export through Savannah.

ADVISORY: Users are solely responsible for opinions they post here and for
following agreed-upon rules of civility. Posts and
comments do not reflect the views of this site. Posts and comments are
automatically checked for inappropriate language, but readers might find some
comments offensive or inaccurate. If you believe a comment violates our rules,
click the "Flag as offensive" link below the comment.

I hope that these developments will further the discussion on the net benefits to soceity and the economy that cheaper fossil fuels will bring. Attached is a very good brief about the advancements to the human condition that fossil fuel discovery and exploitation has brought.